PANews reported on June 11 that according to The Block, data from K33 Research showed that offshore traders who were bullish in the past two weeks are currently losing money on their Bitcoin positions, causing the market to face potential long squeeze risks. At the same time, traders at the Chicago Mercantile Exchange (CME) reduced their risks on Tuesday morning after the U.S. spot Bitcoin ETF's record 19-day net inflow record ended.
K33 senior analyst Vetle Lunde and DeFi analyst David Zimmerman said in a report on Tuesday that after two weeks of steady upward trend, the leverage of Bitcoin perpetual contracts has climbed to an annual high of 260,000 BTC; bullish traders in the past two weeks are currently in a loss, and the notional open interest has increased by 32,000 BTC since Bitcoin last traded at the current price.
K33 analysts said that after a net outflow of $64.9 million from spot Bitcoin ETFs on Monday, traders at the Chicago Mercantile Exchange (CME) reduced their risks, and the annualized futures premium of Bitcoin and Ethereum fell from around 12% last week to a low of 6% on Tuesday, the highest level since May 23. Although short-term framework positioning shows that institutional traders are acting cautiously, risk exposure remains high as open interest is close to historical highs.
Meanwhile, analysts noted that Bitcoin's correlation with the U.S. stock market has reached its highest level in 18 months, with the 30-day correlation coefficient between Bitcoin and the Nasdaq growing to 0.64 last week for the first time since 2022. This trend is partly due to the market's negative reaction to last Friday's strong U.S. non-farm payrolls data, which delayed expectations of a rate cut. Market attention is currently focused on the U.S. CPI inflation data released on Wednesday, and the subsequent Fed interest rate decision, which is expected to remain at 5.5%. K33 analysts said: "The FOMC dot plot and the forward guidance at Powell's press conference are likely to be the most important price drivers, as Bitcoin has regained focus on market interest rate expectations." However, K33 analysts reiterated their bullish stance on Ethereum, expecting Ethereum to remain relatively strong relative to Bitcoin throughout the summer, stemming from expectations of approval of the spot Ethereum ETF.
